Four More Arrested In JPEX Fraud Scandal, Shredded And Bleached Documents Found In A Bath

Updated: 29 September 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Hong Kong police arrested four more people in the investigation of a suspected HK$1.5 billion ($157 million) fraud at crypto exchange JPEX.

The arrests were of people ”relatively close to the core,” the police said, according to local media reports. One of those detained was found in an apartment where it appeared documents had been shredded and bleached in a bath, the South China Morning Post reported.

“We found the scale of the syndicate very big, there’s still massive investigation work that needs to be done,” said Eve Chung Wing-man, assistant police commissioner for crime.

The latest arrests bring the total to 18 in what is believed to be one of Hong Kong’s biggest ever fraud cases.

Hong Kong and Macau police joined efforts to arrest two people, with the family names Ho and Lo.

Visa Cards Bearing JPEX Label Seized

At Lo’s residence in Hong Kong, cash, gold bars, and watches valued at HK$8.7 million in total were seize while at other locations, piles of documents, including unauthorized VISA cards bearing the JPEX label, were confiscated, and a 28-year-old surnamed Wong was also arrested.

Ho had a bank account with about HK$3 million frozen and casino chips of HK$500,00 also were seized, the police said.

In Hong Kong, police executed search warrants at six premises, leading to the arrest of a 28-year-old man named Tang in one of the units. Officers seized HK$880,000 in cash and two luxury wristwatches, and discovered documents that had seemingly been bleached and shredded.

Police have received reports from 2,417 citizens who have reported losses exceeding HK$1.5 billion, Chung said.

Hong Kong govt vows to locate the leaders of JPEX, the crypto exchange that has become the target of fraud investigation.

But no one, it appears, knows who they are

— ekin (@eking0x) September 27, 2023

The joint operation confiscated assets valued at a total of HK$24 million, the police said.

Previous arrests included social media influencers who had established their own over-the-counter crypto changer shops. Among those arrested were Chan Wing-yee, Joseph Lam Chok, and Sheena Leung.

JPEX Saga Unfolds

The JPEX controversy began to unfold on September 13, when the Securities and Futures Commission (SFC) watchdog identified the platform for operating without a license in Hong Kong.

Hong Kong's JPEX exchange under scrutiny! 🚫 Suspended trading as SFC probe leads to arrest. Operating without a license, facing 83 complaints. Negative news, frozen funds, and liquidity issues cited. Delisting & considering DAO restructuring.#JPEX #Crypto #Cryptoinvesting pic.twitter.com/M6SjQDh8Kk

— Adasamuel (@adasamuel66644) September 18, 2023